Record Breaking Green Day!

AI Summary

Transcript

What's up everyone? Welcome to day 26 of my 
small account challenge of growing a $2,000  
account using Charles Schwab as my broker. Today 
is a recordbreaking green day, the biggest green  
day so far during the challenge. And there was a 
question that a chat room member asked while I was  
taking this trade. He said, "Ross, it looks like 
you're risking $30,000 on this trade." And yeah,  
I made money, but the amount you risk was far in 
excess of the amount that you gained. And this is  
a common question that a lot of people ask. And 
so, I want to help you understand the way I think  
about risk when it comes to trading. Yes, I did 
put about $30,000 into this trade. That's a lot  
of money. But if I was risking $30,000, then 
it would mean that I was going to hold until  
this went to zero or there was a high likelihood 
that the position would become worthless. Now, if  
you buy a lottery ticket and you spend $30,000 on 
lottery tickets, there's a very high probability  
that they will be worthless. You can't resell 
them for any value. If you buy uh I don't know,  
if you buy a used car and you're planning on 
fixing it up and reselling it, then you spend  
$30,000 on it, most likely, as long as you've 
done at least a little bit of due diligence,  
you're not going to be a max loss reselling it 
for zero, right? I mean, it would have to have  
something crazy crazy wrong with it for that flip 
to go badly. And with trading, if I buy something  
for $30,000, I know that it has value. And we're 
in a liquid market where I can turn around and  
sell it right away. So really then the question is 
the difference between the price that I get in and  
the price where I'm going to sell and bail out. 
And so on this trade today, I was taking probably  
more like 40 cents of risk per share. So then risk 
based on the number of shares and cents per share,  
that's the actual amount that was at risk. And so 
in this trade, my profit was about two times the  
amount that I was risking. Okay, so let's go 
ahead and jump on the screen share and we'll  
break it down in more detail. As a reminder, all 
the profits from these small account challenges  
gets donated to charity. And every time you guys 
hit the thumbs up on the episodes in this series,  
I add an extra dollar to how much I'm donating. We 
have now raised over $390,000. And today I donated  
$5,000 to the Children's Hospital in Wisconsin 
and $5,000 to Stan Stan uh Sanford Health,  
not Stanford, Stanford Health in South Dakota. So 
we've now donated $390,000. So thank you guys for  
hitting the thumbs up and helping me uh with 
this challenge of making a donation to every  
Children's Hospital or one children's hospital 
in each state here in the United States. So 50  
children's hospitals. That's the goal by the end 
of this year. and we're right now at I think 33 or  
32. Okay, so today's day 26. It's a Monday morning 
and the market was warm. We had a couple of stocks  
that were up quite a bit. We had DFNS, which 
actually began its move in after hours trading  
on Friday. I was looking at that one um as I put 
together my watch list uh for Monday morning here.  
Uh I was looking at it last night and it had this 
nice rally as you could see here. um you know and  
so I expected it would probably be good for a 
trade right at uh the open of pre-market and it  
was but then it kind of pulled back curled pulled 
back then it popped back up to seven um kind of  
pushed a little higher but wasn't able to get back 
to those pre-market highs and so this one didn't  
end up giving me any good trade uh opportunities. 
Then we had um let's see what was the other one on  
the scan? It was um LGHL. Now LGHL is a stock 
that I've definitely traded before. Yikes.  
Look at this drop at the open. So, you know, love 
to see that. Um, I was actually wondering if this  
would break through the volume weight average 
price and squeeze back up towards those highs,  
but as I looked at it, it was very thickly traded. 
In any case, there was no opportunity pre-market  
and then the bell ringing resulted in uh the 
price actually selling off. But then we had EDBL.  
EDBL came out with news earlier this morning about 
um the uh the relationship they have with Walmart  
and getting their products on the shelves at 
Walmart and the stock ends up going from 350  
up to 450 up to 550 650 750 850 all the way up 
to $9.50 50 cents pulls back goes back up to  
just under 10 and then now it's kind of started 
to unwind a little bit but a really impressive  
move. So I felt like it was safe to say that the 
market was warm. Uh hindsight could have would  
have should have traded EDBL in the small account. 
Uh I did trade in my main account but not in the  
small account. I sort of felt like I missed the 
beginning of the move. The trades I just wasn't  
as confident they would work. Um so anyways 
no trades on that in the small account. LGHL,  
no trades. DFNS, no trades. Uh, NBI YA, no trades 
on this one either. It's a little bit um a little  
bit cheaper and um has popped up a number of times 
in the last few days and not worked out. Uh so  
then all of a sudden we got this scanner alert at 
about 9:15 9:17 and it was VTIX. Hits the scanner,  
ding ding ding ding ding, and it goes from 292 292 
to 349. So I was like, "Wow, this thing's moving."  
light volume 18 million share float. And I pull 
up the stock and I look at the news headline and  
it says sells first enterprise system to Tesla 
keyword for Optimus humanoid robot division. And  
I thought that's very interesting. A small 
cap company having any relationship with a  
big company like Tesla or SpaceX. That's a 
big deal. And so I pulled up a chart and I  
saw that it had squeezed up right here, popped 
up, squeezed up right here, pulled back, and I  
jumped in on this pullback right here. And I was 
looking for that break through 370. I took 4,000  
shares at an average of about 350. My max loss on 
this was well, you know, if it broke down to 320,  
that wasn't going to look so good. Uh 315 and 
certainly $3 hard stop. So 4,000 shares risking  
at most 50 cents a share is $2,000. It ended 
up squeezing up here. And as it squeezed up,  
I doubled my position to 8,000 shares. But 
as I doubled my position to 8,000 shares,  
I adjusted my stop from down, you know, up to 50 
cents a share to break even, which was now around  
375. It ends up going to 425, up to 450, up to 
460. I take profit off the table. It dips down. I  
sell the rest as it starts to come back down. And 
then I was looking potentially for another trade,  
but it broke volume weight average price. And then 
it came down and it actually ended up going red on  
the day which is shocking. I am shocked that it 
went red on the day in spite of this headline.  
But it speaks to the market that we're in right 
now where there's a lot of excitement especially  
around Chinese foreign listed securities. In 
fact with no news whatsoever. Yes, the floated  
18 million shares is a little high. I thought 
you know with this Tesla catalyst that would  
be okay but evidently I was wrong. So, the move 
was shortlived, but I jumped in, jumped out, and  
I'm glad that I did. And I locked up just under 
$4,000 of profit. So, about 2 to1 risk-to-reward,  
which is great. And now the account's at a little 
over $38,000. Now, all of this profit is getting  
donated to charity. Uh, right now the account 
is up just just shy at this point of 2,000%.  
Averaging about 78% accuracy. So, I'm making good 
progress. Next goal, $50,000, keeping the account  
growing. And so we'll see how I do uh back at it 
tomorrow morning for day 27. Now, if you guys have  
not already checked out a two-eek trial, you can 
watch as I continue growing this account. Granted,  
it may not be uh what you would consider to be 
a small account right now with $38,000. Uh but  
I am still taking the approach generally of 
uh just taking one or maybe two trades a day,  
focusing on quality over quantity. I'm not super 
active in this account. I'm just looking for the  
best setups because I the stakes are a little 
bit higher. I don't want to lose money that I'm,  
you know, have already donated charity. So, I'm 
donating basically as I go and putting it on my  
American Express. So, if I lose, then, you know, 
then I'm sort of losing money I already gave away,  
which doesn't feel really great. So, I'm being a 
bit more selective here. Uh, which I think many  
of you guys appreciate. Uh, so anyways, check out 
the twoe trial. Link is pinned at the top of the  
comments. And I'll remind you guys as always that 
trading is risky. My results aren't typical. And  
there's no guarantee you'll find success whether 
you trade with me or you learn on your own. So,  
please manage your risk, take it slow, 
and always practice in a simulator before  
putting real money on the line. With that, 
I'll see you guys back at it tomorrow at 7